With the FMCG industry poised for 8 to 8.5 per cent growth in 2005-06, a survey released by the Federation of Indian Chambers of Commerce and Industry (FICCI) reveals that 12 personal care products would continue to register growth rates that vary from 10 per cent to 20 per cent and above.
The survey, based on a feedback from FMCG companies and associations, shows that sectors that are projected to achieve a growth rate of 20 per cent and above in 2005-06 include deodorants (40 per cent), hair dyes (26 per cent), shaving cream, cleaners/repellents (22 per cent) and anti-dandruff shampoos (20 per cent).
The category of 12 per cent growth rate includes soaps and toiletries (14 per cent), personal health care (12 per cent), oral care (12 per cent) and others.
While comparing the growth in urban and rural markets, the survey notes that urban markets have been growing at a faster pace of 7 per cent vis-à-vis the rural, which has recorded 4 per cent growth.
Attributing the higher urban rates to "increased inspirational purchases", the survey states that consumers' preferences are shifting towards higher lifestyle categories like skin care, shampoos and convenience foods among others.
The survey points out that higher growth rates in companies such as Dabur, Marico, Parle and Gillette has been achieved by innovation and "well-planned distribution strategies" adopted by companies.
Highlighting the recent trends observed in the industry, the survey points out that many multinational companies have started sourcing their products from India. For instance, HLL has become the production centre with respect to personal care products globally for Unilever.